We’re more than two decades into the 21st century and it’s on advisors to realize as much. Big steps to that effect start with realizing some of the methods advisors were groomed on early in their careers are no longer relevant.
Next, advisors need to be open to new concepts. Yes, that includes a wider embrace of technology, including, for better or worse, social media. On a related note, advisors need to place more emphasis on content and not just the stuff that comes from a bulge bracket parent firm, though that’s a good starting point.
By elevating their content and tech offerings, advisors can better connect with coveted younger demographics. A worthy endeavor to be sure because along with Gen X, millennials and Gen Z are major pieces in the great wealth transfer puzzle. Said another way, those groups will be inheriting trillions of dollars in the coming years. Alone, that should be appealing to advisors.
And when it comes to tech, artificial intelligence (AI) can be more friend than foe to advisors. AI will not replace advisors. After all, robo-advisors didn’t do that. Second, scores of studies and surveys confirm an important: Clients like a human touch. They can’t get that with AI. Finally, AI technology is not yet advanced enough to make investment decisions, let alone do so across a broad swath of client portfolios.
Talking Tech in Advisory Practices
Broader adoption of technology within an advisory practices runs the gamut of concepts ranging from improved back-office efficiencies to streamlined portfolio management via model portfolios.
Andrew Cialek, CFP®, wealth advisor and Director of Finance and Analysis at Principle Wealth Partners, recently spoke with Sue Thompson of State Street Global Advisors (SSGA) and touched on the advantages of advisors boosting their tech exposure.
“To stay competitive, advisors and firms will need to adapt to the individual circumstances of clients, rather than expecting clients to fit into a predetermined box,” he said. “We often hear the term ‘cookie cutter’ tossed around in financial services. Of course, financial planning is structured (reviews, monitoring, etc.), but every cookie (i.e., client) is different.”
Point is advisors need to show clients they’re evolving with the times and that includes a wider embrace of technology. Yes, that can be impactful when it comes to better servicing myriad client groups – everyone from the highly affluent to those just entering the workforce.
Content Is King
Obviously, advisors have enough on their plates without adding creating bespoke written content to that list. However, it is worth it to consider partnering with a freelance writer to craft customized prose for your practice. AI sounds like a substitute and it is to some extent for perfunctory educational, but it should not be leaned for customization as it lacks a human touch.
Regarding social media- and video-worthy content, the upfront financial advisors make on this front can pay big long-term dividends in terms of client attraction and retention.
“Regular video content has proven to be quite effective. Clients can watch each video, stay informed, ask questions, and share feedback,” Cialek told SSGA’s Thompson. “Meanwhile, advisors avoid repeating the same conversation with 100 clients. For videos, our team prepares a slide deck with a clear cadence, formatting, and talking points. Then we record and distribute the rough draft internally, enabling the team to weigh in before distribution which helps streamline the creation process.”
Related: How Advisors Can Help Clients Avoid Financial Regrets